Eagle East

LATEST NEWS

Eagle East Permit Update - Final Approval Received from MDEQ

November 28, 2017 - On Monday, November 20, 2017 the Michigan Department of Environmental Quality approved our request to amend the Part 632 Mining Permit. This decision authorizes completion of the underground access ramp connecting Eagle Mine workings to Eagle East, mining of Eagle East by underground mining methods, and use of the surface facilities within the existing footprint.

Eagle East Permit Update - Proposed Decision to Approve

September 12, 2017 - Earlier this year, we submitted a request to amend our existing mining permit to allow mining of the Eagle East mineral resource. The Michigan Department of Environmental Quality recently announced a proposed decision to approve our amendment request.

The MDEQ will hold a public hearing on Monday, September 25, 2017 at Westwood Highschool from 6 - 9 pm to hear comments regarding the proposed decision. The MDEQ will also accept written comment on the proposed decision during the hearing and following the hearing until October 23, 2017.

We encourage anyone with interest to participate in the public review process and welcome any questions or concerns that we may address.

Toronto, April 10, 2017 (TSX: LUN; OMX: LUMI) Lundin Mining Corporation (“Lundin Mining” or the “Company”) is pleased to announce the results of a Feasibility Study, including an updated Mineral Resource estimate and a maiden Mineral Reserve estimate, on the high grade Eagle East nickel/copper mineralization, as well as provide an update on the project progress.

(This news release contains forward-looking information about expected future events and financial and operating performance of the Company. We refer to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page 5. All currency figures are in US$ unless otherwise stated.)

Highlights

The Feasibility Study demonstrates the viability of mining Eagle East as an extension of the current Eagle Mine with an incremental estimated post-tax net present value (“NPV”) of $205 million at an 8% discount rate and an estimated internal rate of return (“IRR”) of 47%. The estimated pre-production capital cost is $102 million.

Given the robust results of the Feasibility Study, the Company has approved the full development of Eagle East subject to the successful receipt of amendments to the mining permit.

The Feasibility Study indicates that these Mineral Resources can be mined with no significant changes to the current mine, ore transport, mill, and tailings infrastructure.

Similar mining methods to Eagle are proposed and a maiden Probable Mineral Reserve of 1.54 Mt at 3.7% Ni and 3.0% Cu has been estimated. Mining of this Mineral Reserve will significantly increase nickel and copper production from 2020 and extend estimated mine life to at least 2023.

The Michigan Department of Environmental Quality has approved the initial Eagle East access ramp development within the existing Eagle mine boundary. An application for a modification to the existing Part 632 mining permit to allow the mining of Eagle East, with a supporting Environmental Impact Assessment, was submitted in late March 2017 and a decision is expected prior to the end of 2017.

Eagle East exploration/access ramp development has progressed well since commencement in July 2016. At the end of Q1 2017, a total of 938 metres of centreline advance had been completed together with the purchase of additional mobile mining equipment and installation of mining infrastructure. Ongoing drilling has enabled a Probable Reserve classification, a mine plan update and improved forecast return on investment.